G-FACTORY Co., Ltd. (3474) AI Stock Analysis

• Market Cap: ¥4.31B
• Dividend Yield: N/A
• Average Volume (3M): 3.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 5.43%
• EPS Growth: -1216.66%
• Country: JP
• Employees: 340
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -7.51
• Shares Outstanding: 6,831,500
• 10 Day Avg. Volume: 3,410
• 30 Day Avg. Volume: 3,303
• PEG Ratio: -0.19
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 62.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥594.00
• Price Target Upside: -10.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ¥594.00 ▼(-10.00% Downside)

The overall stock score reflects a mix of solid financial management and technical strength, offset by significant valuation concerns due to negative earnings. The most significant factor is the company's strong cash position and revenue growth, which supports resilience despite current profitability challenges. Technical analysis provides a neutral to positive short-term outlook, while valuation metrics weigh heavily due to the lack of profitability and dividends.

G-FACTORY Co., Ltd. Business Overview & Revenue Model

Company Description

G-FACTORY Co., Ltd. operates as a Japan-based company primarily engaged in the restaurant management support business. The company offers a range of services designed to assist restaurant operators in enhancing their operational efficiency and profitability. G-FACTORY provides consulting services, develops and manages restaurants, and engages in the leasing and brokerage of restaurant properties. Additionally, the company is involved in the franchise development and support for restaurant chains, contributing to the growth and expansion of food service businesses.

How the Company Makes Money

G-FACTORY Co., Ltd. generates revenue through multiple streams within the restaurant management support sector. The company's primary revenue sources include fees from consulting services offered to restaurant operators, which help improve their operations and profitability. Another significant revenue stream comes from the development and management of its own restaurant establishments, where it earns income from restaurant sales. The leasing and brokerage services for restaurant properties also contribute to the company's earnings, as does the franchise development support offered to restaurant chains, which includes franchise fees and royalty income. These diverse revenue streams, coupled with strategic partnerships and an expanding portfolio of managed restaurants, underpin the company's financial performance.

G-FACTORY Co., Ltd. Financial Statement Overview

Summary

G-FACTORY Co., Ltd. shows resilience with revenue growth and improved cash flow management. However, profitability challenges are evident with negative net income and EBIT. The balance sheet reflects stability with moderate leverage and a strong cash position.

Income Statement

G-FACTORY Co., Ltd. shows a mixed performance in its income statement. The revenue growth has been positive, with a 13.4% increase from 2023 to 2024. However, profitability remains a challenge, as evidenced by a negative net profit margin and EBIT margin for 2024. The gross profit margin stands at 48.2%, which indicates good efficiency in cost management at the gross level, but the negative net profit and EBIT margins highlight struggles with operating expenses or other non-operating costs.

Balance Sheet

The company's balance sheet reflects a solid equity position, with a debt-to-equity ratio of 0.65, indicating moderate leverage. The equity ratio is 33.1%, suggesting a stable capitalization structure. Return on equity is negative due to net losses, which affects overall financial stability. Despite this, the company maintains a healthy cash position, with net debt being negative, showing more cash reserves than debt.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow from -398 million to 71 million year-over-year, reflecting better cash management. The operating cash flow to net income ratio is positive, indicating that the company is generating cash even with reported net losses. This suggests that non-cash charges or working capital improvements are beneficial. However, continued net losses pose a risk to sustaining this positive cash flow trajectory in the long term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.39B	6.35B	5.60B	4.74B	3.64B	3.96B
Gross Profit	3.05B	3.06B	2.63B	2.21B	1.60B	1.80B
EBITDA	-75.98M	252.00M	188.62M	624.33M	618.40M	-44.83M
Net Income	-586.91M	-332.89M	-194.00M	271.49M	292.94M	-229.08M
Balance Sheet
Total Assets	4.16B	4.37B	4.56B	4.88B	4.67B	4.13B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.45B	1.50B	2.22B	2.24B	1.84B
Total Debt	860.81M	937.71M	1.12B	1.29B	1.52B	1.38B
Total Liabilities	2.81B	2.90B	2.83B	2.98B	3.13B	2.72B
Stockholders Equity	1.33B	1.45B	1.71B	1.89B	1.53B	1.25B
Cash Flow
Free Cash Flow	0.00	70.30M	-398.00M	17.87M	282.79M	185.64M
Operating Cash Flow	0.00	248.34M	96.64M	533.45M	543.51M	224.22M
Investing Cash Flow	0.00	-160.98M	-504.00M	-468.13M	-35.02M	-33.05M
Financing Cash Flow	0.00	-180.93M	-234.00M	-256.35M	-98.12M	563.49M

G-FACTORY Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 660.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3474, the sentiment is Positive. The current price of 660 is below the 20-day moving average (MA) of 666.95, above the 50-day MA of 640.74, and above the 200-day MA of 607.94, indicating a neutral trend. The MACD of 6.05 indicates Positive momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 15.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3474.

G-FACTORY Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3297	79 Outperform	¥3.09B	9.07	―	3.40%	12.69%	61.19%
3521	72 Outperform	¥4.10B	21.12	―	3.21%	5.96%	34.24%
8996	66 Neutral	¥3.80B	7.45	―	0.53%	16.67%	69.36%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8836	59 Neutral	¥3.55B	258.49	―	―	9.80%	―
3474	57 Neutral	¥4.31B	―	―	―	5.43%	-1216.66%
8944	54 Neutral	¥4.76B	―	―	2.54%	100.98%	-382.93%